Legal and Practical Implications of the Eminent Domain of Mortgages

摘要

Since the city of Richmond, California, has taken concrete steps to initiate the Hockett Plan, many issues will need to be addressed by the courts, both in that case and in future cases. Issues of jurisdiction and constitutionality, including the commerce clause, the contracts clause and just compensation will likely be decided by appellate courts regardless of the outcome of the now pending Wells Fargo case. In addition, practical matters will also need to be taken into consideration for the Hockett Plan to be used, even if all the legal challenges are met. The plan relies on a significant default premium for it to be financially viable. Further, municipalities will need to take into consideration tax and accounting issues that affect the mortgagors and homeowners as this might make the plan a burden on those that it is intending to help.